yeah, it is the same in the old city, I have seen that a few months ago. Anywhere you go in the old city, u'll see a bald guy and a blue squares shirt guy both with sunglasses
Notice the Google cap, he must be showing the car how to navigate the crazy Jerusalem streets (especially the alleys of Nachlaot).
BTW there was no google car driving around, it was a guy with a large device mounted on him, the other guy there was to clear people away, if you look at the street view at the kosel and nearby alleys you can see 2 google people and they try making way for this guy to get thru.
Also in these pictures that you linked to, cars cannot drive there, you can see the permanent bollards on the streets preventing car traffic